UAE Law and Practice Contributed by: Farida Safwat, Elham Mobini and Ramy George, NHB Legal
Fusion is a distinct challenge again: though its risk profile differs sharply from fission – no chain reaction, no persistent decay heat, no long-term spent fuel stor- age – many insurers still apply legacy fission-based exclusion clauses by default, inflating premiums and constraining cover for pilot and demonstration pro- jects precisely when capital is most needed. The core constraint across both technologies is capacity, not appetite: nuclear insurance remains con- centrated among a small number of specialist insurers and pools (eg, Lloyd’s nuclear syndicates), and with- out established claims histories or mature catastrophe models, insurers are cautious about allocating large limits to unproven, early-stage projects. For the UAE, with Barakah Nuclear Energy Plant’s four units now supplying roughly a quarter of national elec- tricity, and Emirates Nuclear Energy Company (ENEC) and energy group, ADNOC, actively evaluating SMR deployment, these questions are becoming live rather than theoretical: whether the operator-channelling and government-backstop model under Federal Law by Decree No 4 of 2012 (the UAE’s Nuclear Liability Law) – designed around a single large multi-unit facility like Barakah – adequately serves a more distributed fleet of smaller, novel reactors remains untested. 9. Legislative and Regulatory Key Trends 9.1 Regulatory Focus Areas and Supervisory Trends The key areas of focus for regulators in the UAE include prudential supervision (the monitoring of financial institutions), governance, claims handling, management of emerging risks, and operational resil- ience. The UAE regulatory framework provides for an inde- pendent mechanism to resolve customer protection complaints. This has encouraged insurers to provide greater transparency to insureds in relation to claims- handling procedures and coverage decisions. This is of particular significance from a disputes perspec- tive, as greater transparency can reduce uncertainty
around coverage decisions between insureds and insurers. Operational resilience and technology risk have become increasingly important areas of regulatory priority. In 2026, the CBUAE introduced regulations requiring insurers to maintain appropriate frameworks to identify, monitor and mitigate risks arising from sys- tems that may be vulnerable to technological risk. This is particularly relevant as the industry shifts towards a reliance on digital platforms and automated processes which are vulnerable to dispute. The Central Bank has introduced a regulatory frame- work requiring insurers to establish processes for iden- tifying and managing climate-related financial risks. It is important for insurers to reflect on risk-selection, pricing and underwriting processes, as unaddressed risks may give rise to disputes concerning coverage for climate-related losses. Overall, the regulatory developments in the UAE are moving towards greater governance, transparency and risk management. From a disputes practice per- spective, stringent regulatory controls have given rise to additional layers of liability where practices fall short of the designated framework. 9.2 Forthcoming Reforms and Market Impact As at the end of September 2026, there do not appear to be any upcoming legislative or regulatory reforms in the UAE insurance sector. Recent changes include the enactment of the new insurance law and the establishment of Sanadak and the Insurance Disputes Settlement and Resolu- tion Committee. The practical effect of these recent changes continues to develop as parties adjust to the evolving framework. The insurance sector’s and the UAE courts’ response to insurance disputes is expected to continue evolving in response to regional and global developments in geo-politics, climate-related events, technology, data governance, operational resilience and sustainability. From a disputes perspective, regulatory expectations are likely to play an important role in the factual back-
283 I NSURANCE L I T IGATI O N 2026
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